Core Viewpoint - Income-focused investors still have solid options for dividend investments despite the S&P 500 rallying, with Schwab U.S. Dividend Equity ETF, Brookfield Infrastructure, and Clearway Energy identified as attractive choices [2]. Group 1: Schwab U.S. Dividend Equity ETF - The S&P 500 index currently yields approximately 1.3%, while Schwab U.S. Dividend Equity ETF offers a yield of around 3.4%, more than double that of the S&P 500 [3][5]. - The ETF provides a high-quality list of vetted dividend stocks with regular updates, making it a simple investment option [4][12]. - The ETF has a low expense ratio of 0.06% and a diversified portfolio across various sectors, including financials (17%), healthcare (15%), and consumer staples (13%) [13]. Group 2: Brookfield Infrastructure - Brookfield Infrastructure's share price has decreased nearly 30% over the past year, despite a 25% rally in the S&P 500, resulting in a dividend yield close to 6% [6]. - The company anticipates growing its funds from operations (FFO) by over 10% this year, projecting at least $3.25 per share of FFO [7][14]. - Brookfield has a low valuation, trading at about 10.5 times its forward earnings, which is roughly a 50% discount compared to the S&P 500's forward P/E ratio of 21.7 [7]. - The company has increased its dividend for 15 consecutive years and expects to raise it by 5% to 9% annually, aligning with its organic growth rate target [8][15]. Group 3: Clearway Energy - Clearway Energy offers a dividend yield of 6.7% and is down about 16% over the past year, despite being in a high-potential industry [9]. - The company targets annual dividend growth of 5% to 8% through 2026, expecting to achieve the upper range of its guidance without external capital [10]. - Clearway Energy is well-positioned in the renewable energy sector, generating stable cash flows from long-term contracts, which supports its dividend growth [16][17].
Are There Any Dividend Buys as the S&P 500 Rallies? Yes, and Here They Are.